EUROPEAN COMMODITIES UPDATE: Choppy trade in crude while gold holds onto 2k and base metals see a mixed picture

Analysis details (10:06)

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  WTI May and Brent June futures trade choppily after settling flat yesterday, with the former dipping back under USD 80/bbl (vs high 80.55/bbl) and the latter under USD 84.50 (vs high 84.98/bbl). The complex is still poised for a week of gains on the back of the surprise OPEC output cut announcement made over the weekend, although the upward momentum was hindered by US data this week pointing to a slowing economy. News flow for the complex this morning has been light, but eyes have been on geopolitics and European leaders alongside Saudi and Iran are in Beijing today, with the latter two solidifying relations following a Chinese-brokered deal. Meanwhile, Nat Gas futures on both sides of the pond also trade with losses intraday following a “corrective bounce” seen during yesterday’s European session - analysts pin the downside on fears of a slowing economy weighing on the demand side of the equation.


• Spot gold is contained but the yellow metal trimmed the Dollar-induced losses seen overnight after topping USD 2,000/oz yesterday for the first time since March last year markets closely eyeing the yellow metal’s all-time high at around USD 2,075/oz posted in August 2020. Elsewhere, base metals are mixed but LME copper trades with gains in a USD 8,873-8,778/t range with some citing demand underpinned by the China re-opening narrative. Meanwhile, iron ore prices have been under pressure, falling some 6% this week, after China’s NDRC urged futures companies not to exaggerate iron ore price action in the markets, and said it will increase regulatory oversight to maintain normal market order.

06 Apr 2023 - 10:07- MetalsResearch Sheet- Source: Newsquawk